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Northwest May Be Heading for Chapter 11

Carrier Struggles to Stay Afloat
As High Costs, Pensions Take Toll;
Rivals Rehabbed in Bankruptcy

By

Susan Carey Staff Reporter of THE WALL STREET JOURNAL

Updated June 13, 2005 12:01 a.m. ET

Now that US Airways and United Airlines have improved their chances of emerging from bankruptcy-court protection, another carrier -- Northwest Airlines -- may be steering perilously close to Chapter 11.

Bad news is stacking up at Northwest like jets circling Detroit's Metro Airport on a stormy evening. The company's stock has lost 42% this year but was up nine cents, or 1.4%, to $6.33 in 4 p.m. Nasdaq Stock Market composite trading Friday. On June 1, Fitch Ratings pushed the company's senior unsecured debt rating deeper...